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Alberto Abaterusso
Alberto Abaterusso
Articles (2616) 

2 Underperforming Holdings to Reduce

Shareholders should curb their stakes in these lackluster stocks

March 08, 2021 | About:

Shareholders of Sunlands Technology Group (NYSE:STG) and Yunji Inc (NASDAQ:YJ) have seen their holdings declining significantly over the past couple of years, largely underperforming the S&P 500 Index.

Furthermore, sell-side analysts on Wall Street have confirmed negative recommendation ratings for these companies, which suggests they do not expect 2021 to be different in terms of share price performance.

Thus, shareholders of these stocks may want to consider reducing their stakes, in my opinion.

Sunlands Technology Group

Shares of the provider of online education services in China have declined by 52% over the past year, 71% over the past two years and 86% over the past three years through March 5, underperforming the S&P 500 by 79%, 108% and 137%, respectively.

The company is currently not paying dividends to its shareholders.

The share price traded at around $1.18 at close on March 5 for a market capitalization of $198.51 million and a 52-week range of $0.68 to $2.95.

The 14-day relative strength index of 42 indicates the stock is still trading far from oversold levels despite the share price tumble.

One sell-side analyst on Wall Street has recommended a sell rating and a price target of 6.86 Chinese yuan ($1.06) per share for the stock.

Yunji Inc

Shares of the Chinese e-commerce platform operator have decreased by 48% over the past year, 89% over the past two years and by 95% over the past three years through March 5. The stock has underperformed the S&P 500 by 75%, 127% and 146%, respectively, over these time periods.

The company does not pay any dividends to its shareholders.

The share price was trading at around $2.39 at close on March 5 for a market capitalization of $507.45 million and a 52-week range of $1.67 to $6.05.

The 14-day relative strength index of 44 indicates the stock is not oversold yet, despite sharp share price depreciation.

One sell-side analyst on Wall Street has recommended a sell rating for this stock.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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